Leadership – April 2009
LEADERSHIP IDEAS FOR TURBULENT TIMES
by Lewis Hollweg, Ph.D.
Chairman and CEO – BHI Human Resource Consulting
TALENT IS EVERYTHING
Every business today is re-thinking its strategy and business model. Precipitated by the global recession, this reevaluation process is the subject of great discussion and debate within and across businesses and industries. However, my view is that a significant number of companies lack the deep talent necessary to effectively engage in an innovative re-invention of their business. If you do not have available the level and quantity of talent necessary to think and plan in a broad, creative, and fundamental manner, no amount of strategic techniques and brain-storming will help. Practical problem solvers and experienced operators will be able to reduce costs and increase quality and speed of delivery. However, if radical perspective shifting thought leadership is needed, those practical improvements may not prepare the company for sustainable success in an uncertain environment.
The Seduction of Conventional Wisdom
Conventional wisdom regarding executive derailment has identified the primary cause of failure as a deficiency in interpersonal and team-oriented skills. Business literature has promoted this view so strongly that the power of intellectual problem-solving has been devalued in the selection, evaluation, and promotion of executives. Several recent research studies support the viewpoint that the importance of brain power has been diminished as a critical factor in evaluating successful senior executive leadership. One paper, soon to be published in a highly respected journal, reviewed the strong validity research of mental ability predicting executive success and identified the trend in discounting the importance of cognitive capacity in executive selection. Another study clearly showed that perceptions of leadership are heavily weighted by assertiveness and social skills rather than by the quality of the ideas and the depth of the problem solving.
My recommendation to every company is to balance both cognitive capacity and interpersonal skills in the selection and promotion of executives. One of the difficulties in evaluating problem-solving skills is the more hidden nature of intelligence as opposed to the greater visibility of social skills. A quiet, introverted, brilliant thinker may be perceived as a less effective leader than a gregarious, outspoken individual with average executive cognitive capacity. In years past, the rising tide of consumer spending promoted many adequate executives, but the deadly currents in today’s economy require deep thinking talent, especially at the senior executive level.
Measures of Intellectual Depth
The measurement of intellectual capacity is not a single test score nor is it just educational background or only job experience. Understanding the depths of a person’s cognitive skills is best accomplished by thoroughly benchmarking the intellectual demands of the position and collecting a detailed set of information about the person’s past accomplishments and current capabilities. Mapping the person’s skills against the competencies necessary for success takes patience, a methodical process and, in many instances, the help of an outside objective evaluation.
The following is a series of process steps that enable the organization to most accurately assess the capabilities of the candidate.
- Develop a clear set of job competencies that reflect the intellectual demands of the position. Many executive competency models have only one broad statement about the level of strategic problem-solving skills necessary for success. Since intelligence is comprised of many types of intellectual capacities, more specificity is critical to selecting the process and standards.
- Recruit executives where there is more available information about their proven skills and accomplishments. Estimates of a candidate’s capabilities can be ascertained from personal interaction, industry forums, referrals from knowledgeable and objective third parties, and from known results. Digging deep into the person’s career is paramount to successful selection.
- Create an interview evaluation format. Ask each interviewer to rate the candidate on each critical success competency so that the information can be easily shared and discussed. Having the candidate respond to a complex scenario is an excellent interview task which reveals his/her strategic thought processes.
- Investigate the use of outside experts in cognitive capacity measurement. Executive problem-solving measurement tools are available along with large data banks of executive level normative information. This evaluation process provides another objective source of evaluation that can be used to confirm or to ask questions about current capacities.
- Create a decision process. Have a small group of key executives and board members follow a systematic process of sharing, understanding, and discussing the information before the final decision is
VAULTING THE BARRIER OF EGO
Even with the necessary talent, many companies will fail to make the required transitions or re-invent themselves because of the inability of the leaders to accept crucial feedback and deal with the weakness of their own leadership approach. Organizations don’t change until individuals change and this change must start at the top. Almost every day the media describes executive behaviors that seem almost unimaginable to the public. Setting aside fraud and corruption, reports expose executives who have failed to grasp the current economic reality and are clueless in their understanding of the impact of $40,000 commodes, bonuses funded by government rescue dollars, and other extravagances. It is as if these executives are wrapped in their bubble of entitlements and so insulated from the dayto-day consequences of the recession that they are incapable of adapting. The refusal to accept significant change is well-documented in the psychological literature as we all learned in our introductory psychology class. Our ego defense mechanisms of denial, repression, and projection are more pronounced in times of rapid change. It is all too common to hear detailed explanations of executives’ failures that are nothing more than sophisticated variations of denial, repression, and projection. Attribution of cause to others or to uncontrollable circumstances becomes a high art for some individuals. In short, people can rationalize anything.
How do we get beyond our defenses and use the current reality to guide and enhance our leadership
capabilities?
- Deep Listening. Feeling respected is one of the most energizing and motivating emotions in all of us. The act of listening deeply to an employee or associate shows respect and, consequently, can have a dramatic impact on both the listener and the speaker. The listener receives more open and honest conversation and the speaker’s feelings of respect, influence, engagement, and commitment can dramatically increase. It takes patience, eye contact, physical stillness, and focus to become a deep listener. Unfortunately, many high energy, action-oriented, and impatient executives find deep listening difficult, and stress typically magnifies these poor listening habits.
- Ditch the defensive behaviors. Most people have built-in defensiveness detectors. When, after receiving candid criticism or feedback, a receiver of the feedback quickly starts explaining the reasons why decisions were made or actions were taken, the sender senses defensiveness. Justifications appear to be an attempt to deflect criticism and, consequently, are likely to reduce further candid or critical feedback. The subtle message sent by the criticized person is, “your criticism is not valid because I had good reasons that you weren’t aware of.” Many executives are not sensitive to the possibility that they are shutting down honest conversation through their “logical” reaction to the feedback. The sender of the feedback wants a thoughtful consideration of their ideas or interpretations of events. Appreciation of their candor and an attempt to fully understand their viewpoint is enough for most people. If the issue is important, saving a detailed discussion for another time after you have thought about their comments is a further sign of the value you place on their opinions.
ENERGIZING AND ENGAGING YOUR HIGH POTENTIAL TALENT
Deep, non-defensive listening is a great start to mobilizing all available talent internally and externally to the company. Another important piece of the success puzzle is the creation of a climate that encourages risk and change. Michael Beer, Ph.D., a Harvard professor and consultant, has created a process that I believe helps maximize the use of internal talent and promotes a climate of change in the company. Beer is a world recognized expert in strategic improvement and change implementation. The fundamental lever in his model is to take a group of your high potential middle managers and use their talent and energy to diagnose and solve critical strategic issues that face the company. By engaging their capabilities and ensuring their commitment, Beer has found a way to build a sustainable change implementation. It also requires the senior executives to listen very deeply. I highly recommend this straightforward methodology for any size organization that is frustrated with their rate and depth of change. Beer has published numerous books and papers that describe this proven method and has available many case studies from his consulting practice. A short summary description of this highly effective approach is attached and much more detail is available on his website http://harvardbusiness.org/search/Michael%2520Beer/100003. He has tapes and step-by-step instructions available for do-it-yourself companies that have the internal resources necessary to implement his approach.
If you have any questions, requests for more information, or comments, please e-mail me at
lhollweg@batrushollweg.com or call me at 469-241-9701.